The Federal High Court of Nigeria has approved the use of a central bank digital currency (CBDC) as legal tender. eNaira will continue to circulate alongside its fiat counterpart.
According to a report by Voice of Nigeria, Nigeria’s CBDC issue clearance was revealed in a federal court hearing on Oct. 2 presided by Justice Taiwo Abayomi Taiwo.
According to the official eNaira website, the digital counterpart of the Nigerian naira would be made universally available, and “anybody can hold it.”
The Nigerian CBDC was launched to commemorate the country’s 61st Independence Day, as previously reported by Cointelegraph. While the eNaira will continue to circulate alongside its fiat equivalent, it is advertised as a speedier, more cost-effective, and more secure method of payment.
It’s worth noting that the decision to offer digital naira comes at a time when the country’s fiat currency, the naira, is at its lowest level since 2003.
According to a new Cointelegraph analysis, Kenya, South Africa, Nigeria, and Tanzania have witnessed the largest crypto acceptance among African countries, with a market growth of 1200% between July 2020 and June 2021.
According to statistics from Chainalysis, peer-to-peer networks, banking limitations, and inflation fears have all contributed to Africa’s burgeoning market.
As a result, the region continues to attract capital, the most recent of which being a $15 million Series A funding round for Yellow Card, a crypto exchange.